Regarding tax on prize won by lucky draw

997 votes

Hi,
I understand you are hesitating to pay tax before it ships to you since you may think it is some kind of online scams.
Then do one thing firstly check the contest sponsor and verify his rating in eBay suppose if it is directly conducted by eBay then read the terms and conditions and e-mail the eBay for confirmation of your prize any you may request the eBay that you will pay tax amount after receiving the prize.
In other case if the contest is run by the 3rd party then check his rating in eBay and e-mail him that you will pay tax amount after receiving the prize and also read the terms and conditions of the contest carefully.
In India the percentage of tax on the prize won is 30% on total winnings is more than 10,000/- U/S 194B of Income tax Act.

Advocate Sai Krishna Reddy Challa LawRato

620 votes

TDS has to be deducted to the extent of 30.90% of the value of the gift/prize or the organiser has to ensure that the winner pays the tax amount upfront as per Section 203 of the IT Act. Good Luck

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